Whether you are filing your individual 1040s or are responsible for the taxes of a small business, you can avoid surprises at tax time by getting a clearer picture of your finances. One of the best ways you can do that is by creating a budget.  

Budget Basics

There are a lot of definitions of budget floating around out there. We like one from Nerd Wallet, which says, “A budget is a way to balance income, expenses and financial goals for a specific length of time.”

We like that definition because it brings your goals into the equation. If you think of a budget as just numbers, the idea of making everything balance can seem remote (or even worse, like a story problem from your high school math class!). When you tie those numbers to your goals – whether you want to take a dream vacation or buy a house – they start to have real meaning in your life. 

As the folks at Nerd Wallet explain, there are many different budgeting plans. Whichever method you adopt, it is important to remember that, “Any budget must cover all of your needs, some of your wants and — this is key — savings for emergencies and the future,” they say. 

At Nerd Wallet, they like to use the 50/30/20 rule as a basic framework for creating a budget:

• 50% of your income should be designated for your needs.
• 30% of your income can go toward the things you want.
• 20% of your income should be targeted toward savings and debt repayment.

If you have a small business in Tampa, QuickBooks might be a good tool for you to consider. But whether you are looking to set up a business or personal budget, the Tampa accounting firm of Walter S. Sanders & Associates is here to help.

The post Will This Be the Year You Make a Budget – and Stick to It? appeared first on Walter Sanders PA.

“Now with tax season upon us, individuals and groups will once again attempt to defraud taxpayers and the US government out of millions of dollars, using techniques and technologies that range from the old school to the cutting edge. This year is no different, and the IRS has been feverishly issuing warnings about how to spot the red flags and strategies for staying out of scammers’ crosshairs,” CNET says. 

Here are two of the tax scams to watch out for in 2020 from CNET:

1 – The IRS impersonation phone call

This one isn’t new, but it still manages to get honest taxpayers to fall for it. It involves someone calling and claiming to represent the IRS to demand that you pay your taxes immediately. “Calling from a phone number that appears to belong to the IRS on your caller ID, they will threaten, badger and intimidate you into making a rash decision. Usually they will often ask for a transfer of funds by gift card or wire transfer. Thieves are increasingly extending this scheme to email and social media channels,” CNET warns.

Don’t fall for it! The IRS will never phone you or show up at your house to demand an immediate payment — especially via gift card or wire transfer. 

2 – Fake texts, emails, or social media messages

“Thieves have had years to refine their email trickery and have recently expanded into text messages and social media messages,” CNET says. These are phishing scams that use e-mail messages to trick you into revealing personal and financial information that can be used to steal your identity. “One particularly bold gambit involves scammers using the IRS name and logo to warn taxpayers about the very scam they’re perpetrating, before soliciting sensitive personal information. Note that attackers are increasingly targeting tax professionals in addition to taxpayers.”

Don’t fall for it! “The real IRS will never initiate contact to request personal or financial information,” CNET says. “If you do receive such a message, the IRS asks that you forward it to phishing@irs.gov. Do not reply to the original message.” 

We all know it can be hard to get through to the IRS. Brian Sanders, a certified Tampa CPA, and the Tampa accountants at Walter S. Sanders & Associates are available if you have questions about your 1040 tax return or have received a questionable communication purporting to be from the IRS.

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